Emotional Distress ERISA Violation Charge Upheld By
Court

March 28, 2003 (PLANSPONSOR.com) - The estate of a
long-term disability (LTD) benefit plan participant is not
preempted by ERISA in its claim that the participant's
employer intentionally caused emotional distress when it
fired her for taking leave to attend chemotherapy
sessions.

>In the ruling, the US District Court for the
District of Massachusetts found the estate’s claim did not
relate to the ERISA-governed disability benefit plan.
However, in upholding many of the estate’s claims
against the employer, the court also found the same claims
of intentional causing emotional distress were preempted by
ERISA when asserted against the plan’s insurer,
according to Washington-based legal publisher BNA.

>The court made the preemption determination in
claims
against the insurer because the estate only sought
individual damages, and under ERISA, fiduciary breach
claims must be brought on behalf of the plan itself.

>Additionally, on both the employer and insurer
front, the court found ERISA preempted separate claims made
by the estate that the employer and the insurer breached
their common law fiduciary duties in their capacities as
the plan’s administrator and insurer when the participant
was discharged without notice following the expiration of
her disability benefits.